Why Government Haulage Scheme Should Be Backed
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Although Certain of the Points Raised Have Already Been Answered They and Others Help to Clarify the Position By T. Worsley
National Organizer, Scottish Commercial Motor Users' Association.
THE exhaustive and varied reviews of the Government haulage scheme, published in "The Commercial Motor " of November 28, 1941, should not fail to inspire the interest of operators and indeed compel an analytical survey of the scheme not so restricted in scope _as your rates expert " S.T.R." suggests. In giving wide' spread publication to such detailed survey, " The Commercial Motor " gives an invaluable service to the road-transport industry even if the editorial matter or contributed conclusions be not accepted in their entirety, for the ventilation of these points of view can serve only to expedite the clarification of any doubtful or ambiguous provisions.
The writer, having had a more or less intimate knowledge of the work of various committees which have dealt with road-transport problems, and particularly with the Road Haulage Consultative Committee, to which the Minister's intention to engage on direct haulage was first made known, feels that, at the present stage, a few passing thoughts may be usefully recorded.
The leading article, very properly, raises the issue of future unity; also it appropriately points out that lack of unity is the main season of the scheme being designed and further suggests that it needs revision. The article by "
Tantalus' suggests that the scheme deserves backing— it is so headed—but its context does li,ttle to justify that course. " S.T.R.'s " criticism is so usefully detailed that a review of the points raised would appear to meet those considerations which are most likely to arise, and whilst not feeling that all conclusions can be accepted, one must acknoWiedge that a substantial number of operators would probably have placed similar construction on the documents, and if, through your columns, any doubts can be debated and removed, " S.T.R." must deserve the gratitude of operators.
The impact of a code of such meticulous and precise rules on a comparatively unregulated industry is bound to be disturbing. It is true that a united industry would have more easily borne that impact, but da is not true to say that a scheme would not have been applied. The paramount claim of national interest in this unprecedented emergency has rendered the control of road movement no less inevitable than the control of rail and water traffic.
Road Transport Presents More Difficult Problems Than Rail or Water Road traffic presents a problem much more intricate than contemporary rail and water services. The last two are,
in the nature of things, operated by larger units more amenable to centralized control, but even in such circumstances the Minister responsible for the maintenance of efficient services has thought fit to reserve to himself the last word in dictating the method of operating, not only part but the whole of the said services. It is admitted that a parallel in road transport would be difficult of complete achievement, but it would be unreasonable to suggest that any Minister, who has to accept final responsibility to the Nation for movement of essential traffic, should be denied direct and continuous control of such facilities as are considered necessary for the purpose.
Reviewing the whole spate of control which the administration has imposed on industry generally, it is a matter for wonder and congratulation that the road-transport industry has escaped with such a modified application of Government interference, For this relief, the industry owes no little debt of gratitude equally to the business-like outlook of the present Ministry and the indefatigable efforts of the A21} Road Haulage (Operations) Advisory Committee. In this connection the writer would take the liberty of emphasizing the truth of an utterance made by a prominent speaker at the first public meeting held in connection with this scheme, when he stated that if operators were in a position to compare the published scheme with the scheme originally submitted to the R.H.C.C., they would be satisfied that the progenitors of the original would not recognize their production.
There is no space in these times to detail the somewhat tortuous procedure through the R.H.C.C. and the S.J.C.. and the subsequent Ministerial negotiations which culminated in the setting up of the R.H. (0.)A.C., suffice it to say that those who have been privileged to follow the various stages of these negotiations are fully satisfied that the resultant scheme represents a road-transport achievement the great advantages of which may easily be lost through any failure of industrial operators to join in that co-partnership solicited; and in this there is no coercion, the scheme is voluntary, the advantage of co-operation is the carrier's.
The Extent of Official Control Is Reduced to the Bare Minimum
Para. 10 of RH/D/13 sets out the position, and if one were to amplify this it would be to say only that the inevitable control had been restricted to its minimum, and that the opportunity to obviate any departure from that minimum was a trust won for the operators.
In the detailed working of the scheme there must be much that only experience can clear up, buthe acceptance of a parallel industry organization gives industrial protection unique in Government control methods.
point in connection with rates and the probability of operators measuring the scheme on this basis only, does not seem to have due regard to several facts. The rates published refer to only chartered vehicles. They provide a continuous payment, its basic amount being independent of extent of use.
They graduate upwards as mileage and use extend.
They guarantee minimum payments and consequently do not embrace any element which ordinary commercial practice must include for incidence of traffic.
Rates applied to traffic carried by other than chartered vehicles will be, according to RH/D/21, governed by usual industrial practice and will be fixed by the carrier.
" S.T.R.'s " reference to contrast between the first sentence of RH/D/12 and para. 9 of RH/D/14 is not clear. To the writer there is nothing apparently inconsistent. Para. 9 merely points out that the contract is between the Minister and the carrier and removes any doubt as to the legal position of the pool.
On the question of Conditions of Carriage, " states that some of these are novel to consignors. They may well be, for " S.T.R.," like the writer, must be well aware that there are many road carriers who have never troubled about conditions until a claim arthe and then, regardless of their own rights, settled on expediency. If any precedent can be set up to apply order in this connection it is surely acceptable, and what better precedent than something to which the Minister agrees?
As to the borrowing of drivers and the infringement of licences, Has " S.T,R." never heard of shunt drivers being provided, and does he know of any difficulty in employing drivers for short periods? He is surely here criticizing an established custom which may not formerly have been put On paper.
On the question of back loads, " S.T.R." presumes some hardship on the carrier, but surely the provision is all to the carrier's good? There must be some regulation in the carrying of back loads by chartered vehicles, and the consultation with the industry in regard to the rate chargeable would seem to afford protection against rate cutting and avoid undue interference with regular traffic flow. Whilst RH/D/16 mentions the A.A. handbook as a guide, the particular clause is wide enough to allow for detours. Even the Minister pays railways on bonus mileage for gradients, etc.
The objection taken to para. 8 of RH/D/16 should not be entertained, having regard to the fact that this para. excludes traffic claims, and that para. 10 provides advances which cannot be said to be ordinary trade custom. It is difficult to conclude that the Minister will be any less able to produce a receipt if required by insurers than the carrier. There are many cases in this industry where receipts are returned to senders. This is a trade custom however irregular. [The Minister will retain the receipts; operators must obtain duplicates—En.] Among the other points raised by" S.T.R." there appears a suggestion to limit carrying capacity in its cubic measurement. The provision meets the case of covered vans, and in the case of open vehicles safe loading has not been superseded.
The off-loading point is a matter for discussion, but here it is definitely specified and if any further service be required presumably the expense will be met.
On the question of the insurance of casual loads, the difficulty here is not new. Many clearing houses have, for years, insisted on this principle.
No Disturbance Between Carrier and Trader
It is respectfully suggested to ".S.T.R." that he should view this scheme with full regard to the unique circumstances. The Minister is now undertaking road haulage, not'airectly as originally proposed, but by deputy, and his deputy is the established carrier. The Minster is extending to that carrier the protection he would have taken if he had been the actual carrier and had operated vehicles direct. Either another Minister or a trader under contract to the State must be the ultimate paymaster. The scheme does not disturb relations between carriers and traders.
If the difficulties " S.T.R." contemplates do arise this will involve settlement between the Minister and the person for whom the traffic is carried. The carrier's liability is to the Minister and is indisputedly prescribed.
The question of whether expense may outweigh advan
tages is one which cannot be examined in the light of normal commercial conditions, The scheme does not presume to offer any advantages other than those enabling the Minister to meet an emergency, and under prevailing conditions the question of expense, important as it is, must be secondary to the national interest. The economic features of this scheme cannot be measered by standards of commercial practice. The very fact that it is inevitably expensive may be in itself an assurance that the end of the emergency will afford a speedy return to normal methods.
• Real Functions of the Ministry Scheme It cannot be over emphasized to all operators that this modified scheme is designed to undertake the following functions :— (i) To provide a limited fleet of vehicles under continuous and direct control which will satisfy the Minister that he is in a position to meet the anticipated demands which, as a result of experience and in conjunction with R.H. (0) A.C., he has assessed. The number of vehicles is limited to 4,100 and is not capable of extension without consultation with the industry through the Committee. (ii) To provide facilities of sufficient elasticity to meet any demands above the normal capabilities of the chartered vehicles which may be anticipated through the usual fluctuation of traffic demands.
(iii) To provide a third line of defence which will put the Minister in a position to deal efficiently and expeditiously with any unpredictable emergency. Whilst it is necessary in the national interest that the provisions detailed above receive the requisite attention, it is equally necessary for the commercial life of the community that there be a minimum disturbance in the ordinary working of traffic, and that, therefore, the number of vehicles which are in any way removed from undertaking their normal duties should, so long as circumstances permit, definitely be restricted. If and when some unpredicted emergency occurs one would expect a serious disturbance in normal traffic working, as in any ordinary walk of life, and it would be natural to suppose that all transport available would be devoted to that sphere of activity which was most essential in the circumstancea. It is therefore desirable that every vehicle, apart from those which are accepted on charter, should be made a,vailable for service with the ". Defence Lines " if and when required.
Reviewed from all its aspects this carefully negotiated scheme, made necessary by the prevailing national emergency, is one which,oin the interests of both the State and the operators, deserves wholehearted support.